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Precision Company uses a periodic inventory system and provided the following in

ID: 2384123 • Letter: P

Question

Precision Company uses a periodic inventory system and provided the following inventory information for May:

May 1

On hand, 20 units @ $2.50 each

$    50

May 8

Purchased 100 units @ $3.50 each

350

May 15

Sold 90 units @ $12 each

1,080

May 24

Purchased 75 units @ $4 each

300

May 29

Sold 65 units @ $12 each

780

How much is the cost of ending inventory at May 31 using the LIFO periodic method? $  

How much is the cost of ending inventory at May 31 using the FIFO periodic method? $  

How much is the cost of goods sold for May using the LIFO periodic method? $  

How much is the cost of goods sold for May using the FIFO periodic method? $  

Precision Company uses a perpetual inventory system and provided the following inventory information for May:

May 1

On hand, 20 units @ $2.50 each

$    50

May 8

Purchased 100 units @ $3.50 each

350

May 15

Sold 90 units @ $12 each

1,080

May 24

Purchased 75 units @ $4 each

300

May 29

Sold 65 units @ $12 each

780

How much is the cost of ending inventory at May 31 using the LIFO perpetual method? $  

How much is the cost of ending inventory at May 31 using the FIFO perpetual method? $  

How much is the cost of goods sold for May using the LIFO perpetual method? $  

How much is the cost of goods sold for May using the FIFO perpetual method? $  

May 1

On hand, 20 units @ $2.50 each

$    50

May 8

Purchased 100 units @ $3.50 each

350

May 15

Sold 90 units @ $12 each

1,080

May 24

Purchased 75 units @ $4 each

300

May 29

Sold 65 units @ $12 each

780

Explanation / Answer

Ans

Periodical LIFO Closing Inventory in hand(40) 20 Units @ 2.5                            50.00 20 Units @ 3.5                            70.00 Cost of Inventory in hand at the end                          120.00 Cost of Goods Sold=Beginning Inventory+Purchases-Closing Inventory Cost of Goods Sold                          580.00 Periodical FIFO Closing Inventory in hand(40) 40 Units @ 4 160 Cost of Inventory in hand at the end 160 Cost of Goods Sold=Beginning Inventory+Purchases-Closing Inventory                          540.00 Perpetual LIFO Cost of Goods Sold 90 units @ 3.5 315 65 Units @ 4 260 575 Cost of Inventory in hand at the end=Beginning Inventory+Purchases-Cost of Goods Sold 125 Perpetual FIFO Cost of Goods Sold 20 units @ 2.5 50 70 Units @ 3.5 245 30 Units @ 3.5 105 35 Units @ 4 140 540 Cost of Inventory in hand at the end=Beginning Inventory+Purchases-Cost of Goods Sold 160
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